A Kuwaiti Investors Market Analysis of New York - Assignment Example

Module A Kuwaiti Investor’s Market Analysis of New York The very first step for a new entrant into any industry especially for international investors is an intensive and extensive analysis of the potential market in terms of location, map, geography, population, culture, economy, politics, legal landscape and technological environment of the target country. This is then followed by a SWOT analysis to establish the capability of the investor to exploit an identified business opportunity. This is a report of such an analysis for investors from Kuwait interested in investing in the state of New York; all the aspects and dynamics that have direct and indirect impacts to commerce are analyzed then a business opportunity noted, followed by a self-appraisal of the investor’s potential to take advantage of the business opportunity. Cultural analysis of the State of New York: New York is arguably one of the most important and famous cities in the world and has been an important center of trade for numerous years. Geographically, it lies in the north eastern region of the USA, bordered nationally by the states of New Jersey, Pennsylvania, Connecticut, Massachusetts, Vermont, Long Island and Rhode Island. It also shares an international border with Canada in the north (Sutcliffe 67). New York’s climate is described as humid continental with diverse weather patterns across the state and at different times of the year. It has humid summers and long cold winters. Two aspects describe the topography of New York; Appalachian highlands and low lying areas where the most important cities are. New York City is situated on the coastal lowland (Silverman et al. 2). The social description of New York can begin with the family setting where it is observed that nuclear families abound in the urban and suburban areas while extended families reside in the rural areas. A single description for the dynamics of the family in New York is impossible given the diversity present though generally parents share the responsibility of raising children and ensuring the wellbeing of the family. In most cases especially in the cities, both parents are employed or seek jobs to take care of their family. In terms of education, New York has one of the lowest teacher-student ratios in the USA besides also being the biggest spender per student at the elementary and secondary levels (Scott, 2010). New York bears the largest public university system in the USA in State University of New York (SUNY), a series of top ranked universities covering 64 campuses, over a million students and annual enrolments of half a million students. The education system is thus well established. The political system of New York integrates into part of the federal US government and a state government (Ward 2). The state government has an executive, a bicameral legislature and a judiciary (95). The urban areas are major Democrat strongholds while the non-urban areas are more inclined to Republican politics (Schneier, Murtaugh and Pole 60). The state government deals with internal affairs including state laws and bylaws, regulation of trade and law enforcement among other issues. The legal system of the state is based upon common English law (Ward 161; Manz, Gibson and Spencer 7). The Federal Trade Commission handles most patenting and marketing issues. The diet and nutrition of New Yorkers also varies according to whether one is in the urban or farmland regions. The trends in the city revolve around eating out and fast food chains are quite popular. The typical meals in this state are mainly fast foods; pizzas, French fries and burgers among similar foods. There however are other foods available from the farmlands including vegetables such as lettuce and whole meals but all constraints in the supply chain mean that most urban New Yorkers can only access fast foods easily. Economic Analysis: According to the 2010 census figures, New York has a population of 19.3 million and is ranked the third most populous state in the USA. Distribution of individuals is skewed towards the cities where individuals of the working age strive to get jobs. New York is cosmopolitan and multiracial having people from numerous ethnic backgrounds. The migration pattern is unique as natives move to other states while international arrivals increase (Rosenblum 2). The GDP of New York is the third largest in the US standing at $1.16 trillion with a personal income per capita of about $46,364 which is one of the best in the world. However, New York has the widest gap between the rich and the poor in the entire USA. It leads in the banking and communications sectors in the USA and has the biggest stock exchange system in the world (Larocco et al. 123). Besides this, the manufacturing and agricultural industries are well established. The state has one of the most established transport infrastructures in the USA complemented by an equally capable communications system and advanced technology (Norton 198). Most trade restrictions at play in other countries are absent in New York. In terms of channels of distribution, New York bears an extensive small scale and large scale system of retail trade in most industries. Market Audit and SWOT Analysis: After an analysis of the geographical, legal, cultural and economic factors among other considerations, the business opportunity spotted is in the supply of fresh foods to New Yorkers in the urban areas. There are very few players in this as has been demonstrated that fast foods are the order of the day. To gain an advantage, Kuwait investors will undertake delivery services at a small charge to homes so as to increase convenience and markets. Health concerns and rising statistics of lifestyle and nutrition related diseases will contribute to compatibility with the intended product in the New York market (Department of Health 2011). The only extra factor contributing to complexity is the house delivery which again is a source of competitive advantage hence does not count. An analysis of the targeted market first begins with the assumption that urban New Yorkers are inclined to fast foods due to lack of affordable and convenient sources of healthy fresh foods. Besides this, there is also increase in levels of informed consumerism especially in food purchase among Americans hence fresh healthy foods (Stanley 2009). The intended format of distribution is double-pronged; at food outlets and also through delivery to residences upon order. A combination of advertisement and sales promotion such as through sampling will be undertaken to enlighten the market on the product. Two levels of competition are observable; fast food outlets and organic food outlets. The fast food outlets include McDonalds and Burger King. Their main strengths are that they are already brands in the market. They also undertake massive advertising and are mainly retail food outlets. Competition will also be from Whole Foods, an establishment in organic and natural food supermarkets and has already established itself even internationally (Whole Foods 2011). The strengths that the Kuwait investors have include the fact that there is a large amount of capital at their disposal hence establishment hiccups due to capital constraints are not in question. Distribution through home deliveries is also a strength that will set apart the Kuwaiti establishment from competitors. The weaknesses foreseeable in terms of being a new entrant include established brands and the lack of previous stay in the USA to develop an on-hand experience of the dynamics of the American market. The opportunities to take advantage of include the ongoing enlightenment of the public on food ethics hence the investors’ establishment will open their production processes to scrutiny. The current efforts by stakeholders in the health industry to highlight the effects of unhealthy foods amongst Americans also offer an opportunity that the Kuwait investors will seek to associate with. The threats that exist involve the bigger fast food brands where they may decide to divert to offering fresh healthy foods. The fact that they are already brands will make it difficult for the Kuwait investors to compete. CONCLUSION An analysis of the geographical, population, culture, economy, politics, legal landscape and technological environment of the state of New York reveals that a potential business opportunity lies in the supply of fresh healthy foods. Most New Yorkers have to do with fast foods not out of choice but out of convenience and affordability. Competition is expected from the fast food stores such as McDonalds and Burger King and from Whole foods; an organic food company. Increased informed consumerism and knowledge on rising disorders from unhealthy diets will offset competition from the fast food stores while home deliveries and cheaper prices will be an advantage over fresh food stores. Works Cited Department of Health. Information for a Healthy New York. 2011. Web. 5 October, 2011. LarRocco, Lori, A. Thriving in the New Economy: Lessons from Today's Top Business Minds. New Jersy: John Wiley & Sons, 2010. Print. Manz, William H., Gibson, Ellen M. and Spencer, Karen, L. Gibson's New York legal Research Guide. USA: W.S. Hein, 2004. Print. Norton, R. Creating the New Economy: The Entrepreneur and the US Resurgence. USA: Edward Elgar Publishers, 2001. Print. Rosenbelum, Constance. More New York Stories: The Best of the City Section of the New York Times. New York: New York Times, 2010. Print. Silverman, Brian, Schlecht, Neil E., Acker, Kerry and Gavin, Tom. Frommer's New York State. New Jersey: Willy Publishing, 2010. Print. Schneier, Edward V, Murtaugh, John B and Pole, Antoinette. New York Politics: A Tale of Two States. USA: M.E Sharp, 2010. Print. Stanley, Brian J. Confessions of a Carnivore. The North American Review, 2009. Web. 5 October, 2011. Sutcliffe, Andrea. The New York Public Library Amazing U.S. Geography. New York: John Wiley & Sons, 2001. Print. Ward, Robert B. New York State Government. New York: Rockefeller Institute Press, 2006. Print. Whole Foods. Copmany Descrption. 2011. Web. 5 October, 2011. Read More